Designer's Outlet has a capital intensity ratio of 0.92 at full capacity. Currently, total assets are $48,900 and current sales are $51,200

Designer's Outlet has a capital intensity ratio of 0.92 at full capacity. Currently, total assets are $48,900 and current sales are $51,200. At what level of capacity is the firm currently operating?    A.  89.1 percent B.  91.6 percent C.  96.3 percent D.  96.8 percent E.  98.2 percent Total capacity sales = $48,900/0.92 = $53,152.17 Current capacity utilization = $51,200/$53,152.17 = 96.3 percent

51.

Monika's Dinor is operating at 94 percent of its fixed asset capacity and has current sales of $611,000. How much can the firm grow before any new fixed assets are needed?    A.  4.99 percent B.  5.78 percent C.  6.02 percent D.  6.38 percent E.  6.79 percent Full-capacity sales = $611,000/0.94 = $650,000 Maximum growth without additional assets = ($650,000/$611,000) - 1 = 6.38 percent

52.

Stop and Go has a 4.5 percent profit margin and an 18 percent dividend payout ratio. The total asset turnover is 1.6 and the debt-equity ratio is 0.45. What is the sustainable rate of growth?    A.  8.13 percent B.  8.54 percent C.  8.89 percent D.  9.26 percent E.  9.36 percent Return on equity = 0.045 × 1.60 × (1 + 0.45) = 0.1044 Sustainable growth = [0.1044 × (1 - 0.18)]/{1 - [.1044 × (1 - 0.18)]} = 9.36 percent